During the Question Hour in Rajya Sabha, Gandhi told members that the scheme, which was implemented in seven districts of Uttar Pradesh and Bihar, was reviewed when the Narendra Modi-led NDA government came to power two years ago.
In the review, it was found that there was "absolutely no work on the ground," she said while informing that the programme was closed on January 31, 2015.
"Rs 31 crore had been spent with no work on ground. So the ministry decided that what has been wasted was wasted and the rest of the funds were returned," she said.
The idea behind the scheme, the minister said, was to train women to become self sufficient and start Self Help Groups, "but this did not happen."
"It was found that many of the NGOs were chosen for reasons other than the ability to work on the ground," she said.
The programme had been started by the previous UPA government with assistance from NABARD.
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